Filing Taxes as a Surviving Parent: How to Claim Child Care Credits Despite Unemployed Spouse

She needs to file as Qualifying Widow with Dependent Child.

Ira Smilovitz, EA Leonia, NJ

8:28 AM (5 minutes ago) to misc.taxes.moderated My understanding is that Qualifying Widow....etc. can only be used in TY2022 and TY2023, thus MFJ in TY2021, am I reading this correctly?

bw

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It appears you are correct. The only clear-cut "assistance" I can find is that if the husband was physically unable to care for himself during the period he was alive, the widow might be able to "claim" his income was $500 (two or more qualifying children) for the month. See

It's not the answer you were looking for.

Ira Smilovitz, EA Leonia, NJ

Thinking about this some more, if you want to be aggressive, you could claim that the husband was physically unable to care for himself for the additional 11 months of the year. While factually true, I doubt that would pass IRS scrutiny.

Ira Smilovitz, EA' Leonia, NJ

Not only would it not pass scrutiny (the return has the date of death) but isn't there another requirement that the spouse reside with the taxpayer for more than 6 months?

I saw something on the IRS website talking about allowing a filing as a qualified widow(er) for 2020. What am I missing?

Qualified widow(-er) status is available for two years beginning the year after the year the spouse dies. It isn't available in the year of death of the spouse.

Ira Smilovitz, EA Leonia, NJ

If the taxpayer's spouse died during the tax year, the widow cannot claim qualifying widower status. The spouse had to have died during the two prior calendar years as one of the qualifications.

Qualifying Widow(er)

You can check the "Qualifying wid- ow(er)" box at the top of Form 1040 or 1040-SR and use joint return tax rates for 2020 if all of the following apply.

1. Your spouse died in 2018 or 2019 and you didn't remarry before the end of 2020.
2. You have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent except that, for 2020:

a. The child had gross income of $4,300 or more,

b. The child filed a joint return, or

c. You could be claimed as a de- pendent on someone else's return.

If the child isn't claimed as your de- pendent, enter the child's name in the entry space below the filing status checkboxes. If you don't enter the name, it will take us longer to process your re- turn.

1. This child lived in your home for all of 2020. If the child didn't live with you for the required time, see Exception to time lived with you, later.
2. You paid over half the cost of keeping up your home.
3. You could have filed a joint re- turn with your spouse the year he or she died, even if you didn't actually do so. If your spouse died in 2020, you can't file as qualifying widow(er). Instead, see the instructions for Married Filing Jointly, earlier.

But in the year the spouse died the surviving spouse can file as married. Isn't that essentially the same from a dollar and cents standpoint?

Yes, but the question that started this thread had to do with the Child Care Credit which, for a MFJ return, is based on the lower income of the two spouses. In the relevant case, essentially zero.

One of my colleagues has pointed out that he believes that IRC §7703 provides authority to file as HoH with the fact pattern of the OP. Whether this is better (with Child Care Credit) than MFJ (without the credit) is an exercise for the taxpayer/preparer.

Ira Smilovitz, EA Leonia, NJ

I agree. The purpose of qualifying widow status was to continue the benefit of married filing jointly for two additional tax years.

If there is a tax advantage to filing separately in the year of death of one of the spouses, is it possible to do so?

Yes. One can always file separately.

Ira Smilovitz, EA Leonia, NJ